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Binance Coin has made a strong bearish breakout in the past few hours.
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Paxos was ordered by US regulators to stop minting BUSD.
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Binance has seen significant outflows in the past 7 days.
Binance Coin (BNB) price pulled back on Monday, becoming the worst-performing big-cap coin, as regulatory concerns continued. BNB price plunged to a low of $287, which was ~14% below the highest point this year.
Paxos to stop minting BUSD
The main catalyst for the Binance Coin price is the latest news by Paxos, the giant American company. In a statement, Binance said that Paxos had been directed by New York regulators to stop minting the stablecoin. This is notable because BUSD is created by Paxos and given Binance’s brand name, as we wrote here.
According to Binance, the market cap of Binance USD will only continue falling as Paxos continues servicing its obligations. Like Tether and USD Coin, Binance Coin is backed by real assets, including US dollars and other securities.
The announcement is notable because of the important role that BUSD plays in the crypto industry now that it is the third-biggest stablecoin in the world after Tether and USD Coin. However, it is still unclear whether this crypto news will have a major impact on the coin.
Meanwhile, Binance has continued seeing outflows from its exchange. According to DeFi Llama, the total amount of assets in the exchange stands at $70 billion. Outflows in the past 24 hours stand at $343 million. In the past seven days, outflows stand at over $400 million. This is a sign that investors are cautious about the situation.
The situation of inflows and outflows in exchanges is mixed. OKX, Huobi, Swissborg, and Binance US have seen over $10 million worth of infflows in the past 24 hours. Others, like Bitfinex, Crypto.com, and Kucoin have had outflows.
Binance Coin price is also bracing for the upcoming American consumer price index (CPI) scheduled for Tuesday. These numbers will provide a clear picture of what to expect from the Fed.
Binance Coin price prediction
The hourly chart shows that the BNB coin price has been in a strong bearish trend in the past few days. It moved below the key support level at $301, the lowest point on February 10. It also crashed below the 23.6% Fibonacci Retracement level.
Binance Coin has moved below the 25-period and 50-period moving averages. It is also forming a bearish flag pattern. Therefore, the coin will likely continue falling as buyers target the key support level at $270. A move above the key resistance point at $300 will invalidate the bearish view.